Issue 2 November 2010

Carbon Trading will impact businesses

The Ministry of Finance in conjunction with the Ministry of Environment and Natural Resources organized a workshop to deliberate on the impact of carbon trading on business development, investment opportunities, financing and investing in Clean Development Mechanisms/ technologies on 8th November 2010 at the Kenyatta International Conference Centre (KICC). Kenya Flower Council participated in the workshop.

The objectives of the workshop was to consult, sensitize and create awareness among key stakeholders on thematic areas to address the carbon market issues and develop necessary frameworks to facilitate the implementation of carbon financing, investment and trading in Kenya.

The workshop majored in ‘Clean Development Mechanisms – CDM’ carbon market. Many carbon markets are structured around compliance and voluntary markets because of the necessity to respond to the global carbon market.

Kenyan businesses will have to envision within the climate change framework to improve competitiveness, make voluntary initiatives in reducing carbon emissions more robust, and provide new, more lasting business opportunities with potential for sustainability to be able to remain in business and trade with the rest of the world.

It was observed that the outcome of the carbon markets include carbon credits, profits, satisfaction and risk management which tend to favour compliance markets more than voluntary markets. The relation between carbon credits and profits was considered from the level of risk and satisfaction of the market participants. Studies show that carbon market participants favour compliance markets owing to the control of credits by the Kyoto regulations, the minimized risks of legally binding contracts and the necessary trade-offs between carbon credits and satisfaction.

The industrialized countries demand for Carbon Credits

The developed world demand that high-skilled innovations are involved in designing energy efficient technologies that are environmentally friendly. The consumer market is also seen to target products in the market that were produced in the most environmental friendly mechanisms.

The emphasis is placed at climate change in business development as an effective agent of change that involves everyone in the product chain of custody in addressing the problem of climate change.

Case Studies

The workshop was attended by participants from more than 71 institutions representing government and private sectors. The workshop closed with case studies to mirror what some of the Kenyan business initiatives are undertaking in Clean Development Mechanism (CDM) projects.

Some of the highlights;

KenGen

The company was now investing more in geothermal and hydropower power generation mechanisms as opposed relying for pack-up from the diesel run generators. The projects proposal worn the interest of the World Bank who are the main financiers. The UNDP is the main link for the carbon trading revenue business for the institutions that had best technologies in carbon emission reductions (CERs).

Ministry of Industrialization

Kenya through the ministry of Industrialization and UNDP is developing energy efficient standards e.g. for electric equipments through use of efficient label. Kenya Bureau of Standards (KEBS) will be mandated for inspection and labeling of products that can be able to sell in the local market.

Kenya Tea Development Authority (KTDA)

The tea agency had developed hydropower stations in the smallholder tea sector in Kenya. On average, to produce 1kg of ready made tea (black tea) it will cost a factory between Kshs 65 – 80. The production of their own electric power had resulted at 30% reduction in fuel cost and electricity bills to Kenya Power and Lighting Company. They are also supplying free tree seedling to their farmers with each factory catchment area to sustain the wood fuel supply.

Kenya Forest Research Services

KFRS is participating in reduction of greenhouse gases through curbing deforestation activities and forest degradation in its REDDs projects activities. Currently they are undertaking a survey to establish baselines for greenhouse gases in the country through a world bank funded project – ‘Forest Carbon Partnership Facility (FCPF)’.

Impact of the Carbon Footprint in 2011 to change the business landscape with far reaching effects

Kenya Flower Council (KFC) is now a member of Environmental Management System (EMS) Technical Committee under Kenya Bureau of Standards. The EMS Technical Committee is mandated to participate in the standards development in both national and international arena.

On 11th November 2010 KFC participated in a meeting to review ISO/TC 207/SC 7 N119 ISO CD 14067-1 (Carbon footprint of products) international standard, being developed for organizations to quantify the amount of green house gases generated due to their production activities and to communicate the results to the interested parties. The review comments on this document will be officially closed by 23rd December 2010 whereby the standard will be voted and published any time thereafter.

It’s apparent that the carbon footprint miles standards are here with us and will affect companies’ way of doing business and choice of business investments technologies.  This will come along with more laboratory analysis, new innovations on GHSE assessments as a requirement to be able to trade in the international markets.

The standard has two main sections; the quantification of Carbon Foot Prints (CFPs) based on the life cycle assessment and shall be used to guide the application of the standard and part two deals with the requirements to communicate with interested parties (the public). The Kenya position is that a carbon emission per capita should be factored into the formula. The cahllege is to get this accepted at this stage.

Life cycle perspective

It considers all stages of the life cycle of a product when assessing the CFP, from raw material acquisition to final disposal.

EXAMPLE: In the function of drying hands, both a paper towel and an air-dryer system are studied. The selected functional unit may be expressed in terms of the identical number of pairs of hands dried for both systems. For each system, it is possible to determine the reference flow, e.g. the average mass of paper or the average volume of hot air required to dry one pair of hands, respectively. For both systems, it is possible to compile an inventory of inputs and outputs on the basis of the reference flows. At its simplest level, in the case of paper towel, this would be related to the paper consumed. In the case of the air-dryer, this would be related to the volume and temperature of hot air needed to dry the hands.

Time period for assessment of greenhouse gas emissions and removals

The green house gas emissions and removals arising from the life cycle of a product shall be calculated over the entire lifetime of the product, including its end-of-life operations and reported according to the following:

–        For all life cycle stages except the use stage and the end-of-life stage, emissions and removals shall be included as if released or removed at the beginning of the assessment period. Where all green house gas emissions and removals arising from the use stage or from end of life occur within ten years after the product has been brought into use, they shall be treated as if released or removed at the beginning of the assessment period and included in the CFP.

–        Where emissions and removals arising from the use stage or from end-of-life stage occur over more than ten years, they shall be included in the CFP, but, in addition, the time period of the releases and removals shall be included in the inventory and reported in the CFP report separately and relative to the year of production of the product.

IFTF EXPO 2010 a great Success

The First edition of the International Floriculture Trade Fair (IFTF) held in Expo Haarlemmermeer in Vijfhuizen and located near the FloraHolland Auction in Aalsmeer, attracted around 10,000 visitors. The distribution of the visitors was equally divided and around 3,000 to 3,500 were seen on a daily basis during the three day event. Visitors came from both Holland and abroad, from more than 40 countries. The distribution of the attending buyers was about 65% international and 35% national.

“Exhibitors were overall more satisfied than myself”, Dick van Raamsdonk said in a press release, “Whilst most exhibitors were happy with the quantity and quality of the visitors, I would have settled for a third (5,000) more. I guess I put my expectations higher than many exhibitors. I don’t know if this is good or bad, but what I do know is that everybody left the fair with a great sense of satisfaction”.

According to Dick, exhibitors were extremely happy with the outcome of the trade fair, the friendly atmosphere, the positive buzz before as well as during the show, the quality of the business visitors, the permanent daylight inside the hall, the free parking facility, the proximity of the FloraHolland Trade Fair and the relatively low costs to participate.

Over 175 exhibitors participated from 21 countries. Many were breeders, growers and traders, but also other floriculture suppliers were well represented.  Ten companies were represented in the event. They include; Kenya Flower Council, Tambuzi Ltd, the Flower Hub, Sian Roses Group, Magana Flowers and Harvest Ltd.

Next year the exhibition space will double and grow from 13,000 m2’s to 23,000 m2’s. Enough space to allow new exhibitors to participate as well and to enlarge stand space of existing exhibitors.

The second edition of the IFTF Expo will take place next year in 2011 from Tuesday November 1 to Friday November 4 in Expo Haarlemmermeer, Vijfhuizen, Holland.

Using EPC’s e-tool in Business

Export Promotion Council has been using e-tools that help exporters to make their companies and products more visible in the international market.  This has been made possible by use of two platforms: tradepoint and buyfromkenya.com. While tradepoint is an international forum, buyfromkenya.com is a national site exhibiting solely Kenyan exporters.

Export Promotion Council has been using e-tools that help exporters to make their companies and products more visible in the international market.  This has been made possible by use of two platforms: tradepoint and buyfromkenya.com. While tradepoint is an international forum, buyfromkenya.com is a national site exhibiting solely Kenyan exporters.

Trade Point

EPC has been given the mandate by World TradePoint Federation (WTPF) to assist exporters under the trade name Tradepoint Nairobi. This mandate was awarded to EPC through a certificate that was handed over to the Chief Executive last year.  Tradepoint Nairobi is therefore a member of a worldwide network of trade points (trade facilitation centres) in more than 120 countries. The World Trade Point Federation (WTPF) is an international non-governmental organization created in 2000 for specific purpose of taking over and running the Trade Point program initiated in 1992 by United Nations Conference on Trade and Development (UNCTAD) which continues to provide support and advice to the Federation through its representation on steering Committee. Through its network of 120 trade information and facilitation centres known as Trade Points, the WTPF assists small and medium-size enterprises (SMEs) in its member countries. In accordance with Strategic Business Plan adopted by General Assembly in 2001, the mission of WTPF is “to become a global business facilitator and trade information provider for SMEs, particularly those in developing and least developed countries, through its unique human network and local know-how combined with its global business marketplace”.
Nairobi Trade Point is one of the earliest 10 trade points to be established in Africa. It was mooted on 2008 as the first tradepoint in Kenya. Granted by UNCTAD and approved by Kenyan government, the tradepoint carries out its work under the umbrella of the Export Promotion Council EPC, the national focal point for promotion of export

Lisbon to host Africa-focused agricultural business forum and AGrotech Fair 2011

Following on from the success of the AgriBusiness Forum 2010 held in Kampala last month, and in the framework of its international activities to strengthen partnerships towards the advancement of the agricultural sector in Africa, has announced the first edition of the AGROTEC-EMRC International Business Forum. Co-organized by EMRC and the Portuguese Industrial Association – Business Confederation (AIP-CE), the forum will be held in Lisbon, Portugal from 20 to 21 January 2011, in conjunction with the AGROTEC Fair.

EMRC’s objective is to contribute to the sustainable growth and development of the agro-food and agro-industry sectors across Africa through the promotion of inter and intra-continental business partnerships.  For the 300 delegates expected from the private and public sectors of Europe, Africa, the Middle East, Latin America, Asia and the USA, the AGROTEC-EMRC International Business Forum will serve as a platform to debate current agricultural trends, focusing on the core theme of how to boost agricultural innovation in Africa.

The organizers expect a wide range of delegates to attend, from entrepreneurs and farmers to development organizations, micro-finance institutions, researchers, bankers, farmer organizations, NGOs, project developers, donors and agricultural experts from around the world.  The guest country of this year’s AGROTEC Fair and the International Business Forum is Angola.

A 20% early bird reduction on registration fees is offered to delegates up to the 15th of November 2010. For further information and to download the programme, please go to www.emrc.be

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